The Gujarat Bench of the Authority of Advance Ruling (AAR) has said that to make ready-to-eat (ready to eat) popcorn, corn grains are heated and mixed with other ingredients such as salt, so it will take 18 per cent GST.
new Delhi. Now you have to pay 18 per cent GST on ready-to-eat popcorn. The Gujarat Bench of the Authority of Advance Ruling (AAR) said that to make ready-to-eat popcorn, corn grains are heated and mixed with other ingredients such as salt, so applying 18 per cent GST on it. Have said This decision of the Gujarat bench of AAR was made during the hearing of the petition of Jai Jalaram Enterprise, a Surat based company making popcorn. Let us tell you that recently a company from Karnataka had filed a petition that in which parathas should also be kept in the range of khakhara, chapati or roti and only 5% GST should be taken.
>> However, the parat on which the paratha has said to impose 18 per cent GST is ready-to-cook and the packet is closed. It has to be heated before eating. In these cases related to GST, now the Central Government is waiting for clarification.
What is the matter – a company sells popcorn in a plastic closed pack under the registered brand name. The company had stated its stand that these are normal maize grains which falls in the category of grains, so it should be imposed at 5% GST.
>> AAR’s Gujarat Bench has given this decision based on the previous decisions of the Supreme Court in the Central Sales Tax Act. The application company argued that despite heating the corn grains, its basic properties do not change.
>> Also, oil, salt and turmeric are used in very small amounts. But in this case, the AAR believed that after roasting popcorn falls into the ready-to-eat category, it should attract 18 per cent GST.
>> A few days ago a similar decision was given by the Karnataka Bench of AAR. AAR had placed paratha under the purview of 18 per cent GST and said that it is different from roti.
>> 5 percent GST is applied on bread. The Karnataka Bench said in its decision that roti or puri is ready to be eaten while the paratha has to be heated first, so it will attract 18 per cent GST.
